You may have heard of Professor Joseph Stiglitz – he’s the Nobel laureate economist who correctly predicted the global crash. He’s distinctly unimpressed with Osbourne’s budget. This, he predicts, will make Britain’s recovery from recession longer, slower and harder than it needs to be. The rise in VAT could even tip us into a double-dip recession. He took time to offer George Osbourne a bit of advice – which will probably go unheeded, because Osbourne’s objectives aren’t necessarily to improve the economy. They are an ideological attack on the state, with the intention of shrinking it by forty percent.

The basis for this is part Keynesian, and has been echoed by other commentators such as Johann Hari, in that we must spend our way out of economic woes. Now I must admit I’m not too fond of how Osborne is going about reducing deficit (raising VAT… huh?), but, for reasons that’ll become apparent below, I do think we need to tackle the deficit.